The Working Families Tax Cut Act (formerly the One Big Beautiful Bill Act) introduced significant changes to federal aid programs. Effective July 1, 2026, federal regulations require Federal Direct Loan eligibility to be based on the number of enrolled Title IV program credits* for the award year. This process is called the Schedule of Reductions (SOR).
*Title IV credits: Title IV credits are defined as credits required for your program of study. Credits not required for completion of your program are not considered in determining federal aid eligibility, including loans. Loans for students with 6 – 11 Title IV credits will be reduced. A minimum of 6 Title IV credits is required to receive loan funds in a semester.
Beginning in Fall 2026, GTC will offer Federal Direct Loans based on full-time enrollment, similar to the Federal Pell Grant. Students who are enrolled in 12 or more Title IV eligible credits will be eligible to receive the full amount of their annual Federal Direct Loan offer.
Students enrolled in 6–11 Title IV eligible credits are not eligible to receive the full annual loan amount. Instead, their Federal Direct Loan disbursement will be adjusted based on the number of Title IV eligible credits in which they are enrolled at the time of disbursement.
Changes to your enrollment after your loan has been disbursed may require adjustments to your annual loan amount. If you drop a course after your loan has been disbursed, one of the following may occur:
For Fall 2026, courses dropped through October 1, 2026, may result in an immediate repayment obligation to the Bursar's Office.
For Spring 2027, courses dropped through February 17, 2027, may result in an immediate repayment obligation to the Bursar's Office.